Detroit Free Press Staff Writer

There’s nothing “sinister” or illegal about raising funds for a nonprofit agency, attorney Christopher Andreoff said following today’s arraignment of his client, who is charged with giving bribes and kickbacks to Kilpatrick and others tied to the pension funds.

“I don’t know about him paying any kickbacks or bribes to anybody,” Andreoff said, later adding: “In fact, I don’t understand why Kwame Kilpatrick is even mentioned in the indictment.”

Zajac, 68, who appeared in court clutching a cane, appeared frail during his arraignment and said nothing to reporters, beyond smiling as he left the courtroom.

Zajac, who oversaw two Detroit pension funds for 30 years, and former pension trustee Paul Stewart were indicted last month on charges of bribery conspiracy, becoming the fourth and fifth defendants to be charged in the government's years-long investigation into the city’s pension funds.

Among the allegations in the indictment is that Zajac – whose salary was $400,000 – received a substantial raise in 2007 after hosting parties that raised thousands of dollars for three pension trustees.

According to pension board minutes from an Oct. 18, 2007 meeting, the vote by police and fire trustees to raise Zajac’s pay was not unanimous.

Trustees George Orzech, Jeff Pegg and Greg Best rejected the raise, minutes showed. Orzech said he objected to the raise because it was “an unannounced and very sudden salary increase for legal counsel” and because “there were no negotiations, research, comparables or documents submitted whatsoever for this 33 1/3% salary increase,” according to the minutes. “This action was inappropriate,” Orzech said at the time.

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According to the indictment, Zajac forced people with business before the pension funds to spend thousands of dollars to entertain trustees. He also sought to curry favor with ex-Detroit Treasurer Jeffrey Beasley and Kilpatrick by raising more than $70,000 for the Kilpatrick Civic Fund, the indictment said.

Beasley, a onetime fraternity brother and appointee of Kilpatrick, faces trial in July on charges he took bribes and kickbacks in a scheme that cost the two pension funds $84 million in losses.

Zajac, meanwhile, has been placed on administrative leave without pay, temporarily forfeiting his $400,000 salary as attorney for the General Retirement System of the City of Detroit.

Zajac also was general counsel for the Police and Fire Retirement System, but he was fired in November amid allegations of wrongdoing.

Zajac was freed on bond and is prohibited from contacting any witnesses in the case.